CAROL MASSAR | BLOOMBERG ADVANTAGE RADIO | 28 MARCH 2016
Bret Schroeder, healthcare expert at PA Consulting Group, shares insights with Bloomberg Advantage Radio around the ongoing flurry of M&A activity within the healthcare sector. Speculating on what's ahead in terms of M&A activity in the healthcare industry, Bret states: "What you're going to see is continued M&A, both in the payer and provider space."
Commenting on why this activity is happening after the ACA has passed, Bret comments: "From my perspective, what happened was ACA passed and the result to hospitals was decrease in payments and that didn't happen for a few years because they layered it in over time. So what you saw was the hospitals getting reduced reimbursements over time and as that started to kick in, they looked around and said 'okay, the only way we can combat this is through some mergers to take out the costs, combine market share, and focus on the ability to increase our revenues."